S'pore dollar hits new high against US dollar (1 USD = 1.208 SGD)

The Singapore dollar hit a fresh record against the US dollar yesterday, touching S$1.2086 to the greenback in Asian trade before retracing slightly. Boosted by strong growth drivers and concerns about the US debt ceiling, some expect the Singapore dollar to appreciate even further towards S$1.19 to the US dollar by year-end. A strong dollar, however, will not be good news for all. Mr Alvin Liew, senior economist at United Overseas Bank, said that manufacturers and exporters could be "feeling the heat" especially with the increase in labour costs. He added that a stronger currency will also impact competitiveness. RACHEL KELLY